Post on 14-Apr-2018
7/27/2019 Tugas editing TIK (section break)
1/25
Topic
Energy: Renewable Energy and Environmental Solutions
Title
THE FEASIBILITY STUDY OF PRODUCING BIOETHANOL FROM CASSAVA
PLANTED IN POST-MINING LAND USING BENEFIT COST RATIOAPPROACH
Author and Affiliation
Fikri Irsyad M. XII IA 4/08
Hernawan Febrianto XII IA 4/10Intan Nur Enima XII IA 4/11
Ragesa Mario Jr XII IA 4/18
Wikaranosa S.S. XII IA 4/24
Mailing Address
7/27/2019 Tugas editing TIK (section break)
2/25
J l K B N 21 S b
Table of contents
Table of contents i
Abstract .... ii
1. Introduction 1
2. Theory . 3
2.1. Cost benefit analysis . 3
2.2. Bioethanol production process .. 4
3. Methodology ... 6
4. Result . 8
4 1 A ti 8
7/27/2019 Tugas editing TIK (section break)
3/25
The Feasibility Study of Producing Bioethanol from Cassava Planted in Post-
Mining Land Using Benefit Cost Ratio Approach
Abstract
Demand for energy will increase along with increasing population, leading to the impact
of climate change. One way to adapt to it while preserving environment is by using fuel
from biomass, like bioethanol. This paper will discuss about bioethanol that can be
made from cassava as renewable energy in Indonesia, and environmental solution
through the act of planting the cassava in a post-mining land. Benefit Cost Ratio
approach is used to test the feasibility of the act. The project used as a study case
belongs to PT Indomining that has been doing the project in Sangasanga district in
East Kalimantan.
Keywords: bioethanol, cassava, post-mining land, benefit cost ratio, renewable energy
7/27/2019 Tugas editing TIK (section break)
4/25
1. Introduction
As the population in Indonesia is increasing, demand for energy is also increasing.
According to the Ministry of Energy and Mineral Resources (EMR), gasoline fuel
consumption was 3.9% above the average quota for the year 2011 (66.06 thousand
kiloliter per day). While diesel fuel consumption reached 5.3% above quota (37.75
thousand kiloliters per day). Gasoline and diesel are the two refined petroleum
products, which are the most widely used in Indonesian society. But as we all know, oil
is a fuel that cannot be renewed.
Apart from gasoline; there are other available sources of energy such as coal.
Petroleum and coal are the energy sources that will release greenhouse gas (CO 2) to
the atmosphere. This gas is widely known as the prime cause of the global climate
change. Indonesia had declared to reduce its emission up to 26% by 2020 in United
Nations Climate Change Conference (COP15) in Copenhagen.
The government already issued some regulations to respond to this, such as
Presidential Instruction No. 1/2006 and Regulation of the Minister of Energy and
Mineral Resources No. 32/2008. One of the ways to adapt to the global climate change
is to use fuel from biomass like bioethanol. It is renewable, has sustainability of supply
and create cleaner environment
7/27/2019 Tugas editing TIK (section break)
5/25
The energetic and economic aspects of using cassava as a biofuel crop are well
documented. For instance, Table 1.1 shows a direct comparison of bioethanol
production from different energy crops which was reviewed by Wang (2002). The
conclusion was that cassava compared favorably to other crops such as maize,
sugarcane and sweet sorghum. Indeed, the annual yield of bioethanol was found to be
higher for cassava than for any other crops, including sugarcane. Hence, the interest in
production of cassava starch-derived bioethanol is progressively increasing inIndonesia and the rest of world. In this review, it is mainly addressed on biological
issues of cassava as a biomass for biofuel production and some of its economic
aspects in Indonesia.
Table 1.1 Comparison of bioethanol production from different energy crops
Crops Yield
(ton ha-1
year-1
)
Conversion rate to bioethanol
(L ton-1
)
Bioethanol yield
(L ha-1
year-1
)Sugarcane 70 70 4900
Cassava 40 150 6000
Sweet sorghum 35 80 2800
Maize 5 410 2050
Wheat 4 390 1560
Rice 5 450 2250
Mining companies have already planned to produce bioethanol from cassava planted in
post-mining land as a form of environmental stewardship and renewable energy
7/27/2019 Tugas editing TIK (section break)
6/25
7/27/2019 Tugas editing TIK (section break)
7/25
2.2 Bioethanol production process
Both sugar-containing substrates such as sugar cane, sugar beet, molasses, and
starch-containing substrates such as cassava, and corn can be deployed for bioethanol
production. Although the bioethanol production processes from both type of substrates
are quite similar, their processing techniques are slightly different in the initial raw
materials preparation stage. Sugar-containing substrates, by nature, are fermentation
ready without further modification, while the starch-containing ones need an additional
step to convert them into fermentable sugar. Subsequent production processes are
essentially the same for both types of substrates.
Starch is converted into fermentable sugar via hydrolysis. Hydrolysis is a chemical
reaction between starch and water which breaks down the long chain of starch polymer
into fermentable sugar. There are two techniques for hydrolysis: enzymatic and acid
hydrolysis. After fermentable sugar is obtained, bioethanol can be produced directly by
microbial conversion through fermentation by the same strain of yeast used with sugar-
based substrate. Yeast strain used in the sugar fermentation is usually bakers yeast
(Saccharomyces cerevisiae). It is deployed as a seeding for the fermentation.
Initially, alcohol derived from yeast fermented sugar has a concentration of only about
7/27/2019 Tugas editing TIK (section break)
8/25
Two distillates are obtained during a distillation process: alcohol and fusel oil. CO2 is
produced by yeast during an anaerobic fermentation process. The amounts of CO2
produced, by weight, are nearly equal to the amounts of bioethanol obtained in the
fermentation process. The bioethanol production processes mentioned above are
summarized and illustrated in Figure 2.1.
Figure 2.1 Anhydrous bioethanol production processes from sugar and starch-based feedstock
7/27/2019 Tugas editing TIK (section break)
9/25
3. Methodology
In this paper, Benefit Cost Ratio approach is used to test the feasibility of producing
bioethanol from cassava planted in post-mining land. The methodology starts from
calculating the cost. Then, calculate the benefit. Finally, compare the benefit and the
cost.
According to Sorapipatana & Yoosin (2010), costs of bioethanol production fromcassava in post-mining land can be categorized into four groups which are feedstock
costs, capital investment costs, operating and maintenance costs, and gains of by-
products. Since this study discussed about bioethanol production from cassava planted
in post-mining land, there is one more cost to be accounted that is post-mining land
reclamation cost.
1. Feedstock costs
The price of cassava feedstock is varied by location, seasons, local supply-demand
conditions, and transportation (Sorapipatana & Yoosin, 2011). The type of cassava
can also affect its feedstock price. In Indonesia, the common type of cassava is
Manihot esculenta that is edible and Manihot glazioviithat is poisonous.
2 O ti d i t t
7/27/2019 Tugas editing TIK (section break)
10/25
5. Gains of by-products
By products from bioethanol production from cassava are carbon dioxide, fusel oil,
stillage and DDG (Sorapipatana & Yoosin, 2011). Taken from Sorapipatana &
Yoosin (2010), the unit cost of bioethanol production is expressed by the equation:
CEt=CF+ CO&M+ C1 CR CB (3-1)
where CEt is the bioethanol production costs (USD/L); CF is cassava feedstock costs
(USD/L); CO&M is operating and maintenance costs (USD/L); C I is capital investmentcosts (USD/L); CR is reclamation costs (USD/L); CB is gains of by-product (USD/L).
The benefits that come from bioethanol production in post-mining land are divided into
two groups are the unit profit from the bioethanol sales and the economic value of
substituting gasoline, diesel and kerosene with bioethanol.
1. The unit profit from the bioethanol sales
The unit profit is the profit that the company gets for every liter bioethanol sold after
subtracted the unit selling price with total unit cost. In Indonesia, bioethanol is sold
for IDR 10,000/L.
2. The economic value of changing gasoline, diesel and kerosene with bioethanol
The economic value is estimated by calculating the amount of money the people of
E t K li t i ll i S di t i t if b bi th l
7/27/2019 Tugas editing TIK (section break)
11/25
4. Results
4.1 Assumptions
The plants capacity is 150,000 L/day.
Operation days of plant are assumed to be 330 days/year.
The project life is assumed to be 20 years.
The annual interest rate of the investment is 6%.
Prices used in this study are based on prices in 2011. If there are financial values in
other years, then it will be converted to its present value using assumed interest rate
above.
The exchange value of USD to IDR is IDR 9045/USD based on Bank Indonesia rate
at 11th
of August 2011 (Bank Indonesia, 2011).
The yield of bioethanol from cassava and the data of other raw materials needed,
such as enzymes, yeasts, water and chemicals, were taken from Sorapipatana &
Yoosin (2010) which based on figures obtained from Thailand Institute of Scientific
and Technological Research (TISTR)s pilot plant.
4 2 E ti ti f Bi th l P d ti C t f C
7/27/2019 Tugas editing TIK (section break)
12/25
7/27/2019 Tugas editing TIK (section break)
13/25
7/27/2019 Tugas editing TIK (section break)
14/25
4.3.2 Economic value of substituting gasoline, diesel and keroseneIn the area like Sangasanga district, East Kalimantan, the availability of fuel, whether
gasoline, diesel or kerosene is quite rare. It is proven by the price of these fuel is
changing over time according to the scarcity of the product. The price of gasoline
reached IDR 15,000 in remote area of Kalimantan in June 2011 (Joewono, 2011) and
the price of kerosene reached IDR 12,000 in East Kutai, East Kalimantan in January
2011 (Minyak Tanah di Kutai Timur Rp 12 Ribu per Liter , 2011) while the prices set by
government are IDR 4,500/L for gasoline and IDR 2,500/L for kerosene (Gero &
Mulyadi, 2011).
The economic value is estimated by the amount of money that can be saved by using
bioethanol instead of gasoline, diesel or kerosene. The calculation can be seen in
Table 4.3.Tabel 4.4 Estimation of economic value of changing gasoline, diesel and kerosene with bioethanol
Price (IDR/L)Difference
(IDR/L)
Bioethanol Gasoline
11,000 15,000 4,000
Bioethanol Kerosene*
11 000 22 500 11 500
7/27/2019 Tugas editing TIK (section break)
15/25
7/27/2019 Tugas editing TIK (section break)
16/25
After that, there are few things that will be discussed as the matter of effects of the useof cassava-based bioethanol. The discussion will consist of certain categories based
on some aspects, there are:
Politic
In terms of political, the implementation and utilization of cassava refers to some
regulations of the government of Indonesia, and those are Presidential Instruction
No. 1/2006 and Regulation of the Minister of Energy and Mineral Resources No.
32/2008. Presidential Instruction No. 1/2006 explains about supplies and the use of
bio-fuel as alternate fuel. Thus, it can be concluded that the use of cassava to
produce bioethanol is one thing that can be done to meet the Presidential
Instruction. Then the minister of energy and mineral resources regulation contains
the rules of supplying, utilizing, and bio-fuel trade system as an alternate fuel. In the
ministers regulations, there are guidelines in using, distributing, and sale of bio-fuels
as a substitute for fuel. Therefore, in order to produce bioethanol it is required to
form a business entity that the use of bioethanol can be ordered and distributed and
sold to the society.
Economy
7/27/2019 Tugas editing TIK (section break)
17/25
that it can be implemented to substitute the common used energy. Besides that, the
utilization of bioethanol can also fulfill the energy needs of inhabitants around the
production of bioethanol area or other remote areas.
Environment
In terms of environmental, the process of cultivating cassava in post-mining areas
can restore the mineral soil so that the area cant decay. This is because cassava
does not require soil with high mineral, so it can be grown in any land. Then, theutilization of bioethanol can lessen greenhouse emissions, for it is more eco-friendly
fuel. By reducing greenhouse gas emissions, it can contribute to achieve the
proficiency level targets to reduce emissions by 26% in 2020 as the United Nations
Climate Change Conference (COP15) stated it in Copenhagen.
Obstacles
In addition to the positive impacts that can be generated by the use of cassava to
produce bioethanol as a fuel substitute, there are several obstacles to be
encountered in implementing them. The Cassava-Based Fuel Bioethanol production
at industrial level meets challenges of the lagged cassava planting scale and
management. As cassava is able to grow in poor soils on marginal lands, expansion
f lti ti i th i k f th hill id t l d i
7/27/2019 Tugas editing TIK (section break)
18/25
6. Future Work and ConclusionsFrom this study we can conclude that the bioethanol production from cassava planted
in the post-mining land by is feasible according to the result of Cost Benefit Analysis. It
is shown in the ratio of cost and benefit estimated from this project. The ratio is 2.62
which is higher than 1. The project itself is highly potential to be applied in Indonesia,
from the political view; the government has established several law and legislations to
encourage the production of bioethanol, from the economical and social aspect; the
project is already proven to be able to give profits to the producer and to encourage the
growth of small industries in Indonesia, in the terms of energy; the bioethanol produced
from cassava is environmentally friendly and able to produce less carbon emission
than the fuel we use now, the last but not least, from the view of environment, the
cassava planted in the post-mining area can help enrich the soil in the area.
This study acknowledge that this project can reducing emission from green house gas
because the bioethanol is cleaner fuel, provide access to energy for remote
communities and also generate profit for the producers.
However, there are some flaws in this study that is opened for further study in the area
of bioethanol production from cassava or even the renewable energy solutions. Due to
7/27/2019 Tugas editing TIK (section break)
19/25
References
Augusta Resource Corporation. 2007. Reclamation and Closure Plan,[online] Available
at:
[Accessed 15 August 2011].
Bank Indonesia. 2011. BI Rate. [online] Available
at: [Accessed 11August 2011].
Gero, P. P., & Mulyadi, A. 2011. Harga BBM Bersubsidi Tak Berubah. Kompas,
[online]12 August. Available at:
[Accessed 15 August 2011].
Indosiar. 2008. Etanol dari Singkong Karet [online] Available at: [Accessed 15
August 2011].
Jiputro. 2010. Estimasi Evaluasi Proyek Kebun Singkong. Jiputro.net, [blog] 29
December, Available at:
7/27/2019 Tugas editing TIK (section break)
20/25
Singkong-Jadi-Bioetanol-Tarikan-Mesin-Halus-Rezeki-Pun-Mulus.html> [Accessed
15 August 2011].
Wang, W. 2002. Cassava Production for Industrial Utilization in (the) PRC Present
and Future Perspective. 7th Regional Cassava Workshop. Bangkok.
7/27/2019 Tugas editing TIK (section break)
21/25
Appendix
Annual Early Closure Costing
Overall Reclamation Costing
The Feasibility Study of Producing Bioethanol from Cassava | Appendix 18
7/27/2019 Tugas editing TIK (section break)
22/25
7/27/2019 Tugas editing TIK (section break)
23/25
7/27/2019 Tugas editing TIK (section break)
24/25
Reclamation Activities Summary (3)
Reclamation Activities Summary (4)
7/27/2019 Tugas editing TIK (section break)
25/25
Reclamation Cost Summary per Activity Area
.
Task
Approx.Reclamation
Area2
(acres)
HazardousMaterials
Cost($)
Water Quality($)
Demolition/CleanupCost ($)
EquipmentCost($)
Labor Cost($)
RevegetationCost($)
Long-termOperation,
Maintenance, andMonitoring Cost
($)
Subtotal DirectCost($)
Indirect Cost($)
Total Cost($)
Rosemont Open Pit 135 41,300 5,000 24,300 70,600 19,600 90,100
Perimeter Berm 402 1,340,800 133,200 199,000 1,673,000 465,000 2,138,000
Waste Rock Storage 1,600 4,178,900 564,400 790,400 5,533,700 1,550,500 7,084,200
Tailings Starter Buttress 3600 948,300 85,700 178,800 1,212,700 336,000 1,548,800
Tailings 540 1,148,500 155,300 266,700 1,570,500 439,600 2,010,100
Process Ponds 20 321,400 29,700 61,800 8,300 99,800 521,000 141,500 662,500
Roads Unknown
Plant Site 120 210,000 5,192,300 960,600 129,000 83,200 6,575,100 1,788,200 8,363,300
Topsoil Stockpiles 200 75,600 10,800 99,000 185,400 51,100 236,500
Stormwater Basins 2 4,100 600 700 5,400 1,500 6,900
Miscellaneous Reclamation Costs 0 25,200 150,000 69,400 103,100 714,000 346,800 1,408,500 390,600 1,799,100
Total 3,379 $ 235,200 $ 321,400 $ 5,372,000 $ 8,829,300 $ 1,195,400 $ 2,455,900 $ 346,800 $ 18,755,900 $ 5,183,600 $ 23,939,500
The Feasibility Study of Producing Bioethanol from Cassava | Appendix 22